Posted on 10/23/2010 3:54:23 AM PDT by Scanian
Fannie Mae and Freddie Mac, the government-run mortgage giants, share much of the blame for the foreclosure crisis.
Fannie and Freddie own or guarantee $5.5 trillion of mortgages -- more than half of all US home mortgages. Major banks -- Bank of America, Wells Fargo, Citigroup and JP Morgan Chase -- service the loans for Fannie and Freddie for fees. And when they do, they do what Fannie and Freddie tell them to do.
To that end, Fannie and Freddie have long issued "Servicing Guides." Fannie's latest update (Aug. 31) noted that Fannie "has established time frames within which routine foreclosure proceedings are to be completed." It warns that Fannie "reserves the right to impose a compensatory fee" on banks that don't meet the guidelines.
The update perpetuates Fannie's longstanding, specific deadlines for exactly how long banks have to complete foreclosures on a state-by-state basis: 185 days in Florida; 300 days in upstate New York and 420 days downstate, etc. In states where foreclosures don't have to go through the courts, Fannie imposes much tighter time frames: 150 days in Nevada and just 90 days in Maryland.
(Excerpt) Read more at nypost.com ...
Raines made 100 mill plus racketing Fannie. Styron made near 20 million of Fred, many others made tens of millions. The banks get risk less profits, Fan and Fred are bailed out, and will be bailed out by the taxpayer. Private profits and public risks and costs.
This is the new American way to wealth. GM, AIG, Citi, Universities, Unions, Government Pensions...
so the recent moratorium did not come from the banks, it came from fannie and freddie who are controlled by the administration.
so in one week B of A was able to (ITS A MIRACLE!!!) review all files and say all is peachy wonderful.
the solution to the housing market price collapse is to take those homes off the books, write them off, close the banks that need to be closed, and move on. (and perp wall all the bank and loan fraudsters)
Franklin Raines and Jamie Gorelick should be in PRISON!!
Anyone got a list of banks that still hold their own paper?
I know some credit unions do, but the one I do business with will only to 10 and 15 yr mortgages right now...
you physically can’t undo the chain of selling. There are too many layers involved.
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